Parliament Approves The The Return Of VAT To 16% : vimarsana.com

Parliament Approves The The Return Of VAT To 16%


By Soko Directory Team / Published December 23, 2020 | 12:13 pm
Kenya’s parliament has approved the National Treasury’s decision to revert taxes to Pre- Covid levels in January 2021  to manage the growing revenue deficit, cutting short the relief that Kenyans have been enjoying since President Uhuru Kenyatta made the order.
The government in March temporarily reduced taxes aimed at offering a reprieve for businesses and consumers who had been adversely affected by the pandemic. According to the President, the move was to cushion Kenyans against the effects of Covid-19.
In this case,  income tax was reduced by 5.00 percent to 25.00 percent while VAT was cut by 2.00 percent to 14.00 percent. With the approval, VAT now goes back to 16 percent and income tax back to 25 percent.

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